WASHINGTON, D.C., _July 15, 1867_.
_To the Senate of the United States_:
I transmit herewith reports from the Secretary of War and the
Attorney-General, containing the information called for by the
resolution of the Senate of the 3d instant, requesting the President "to
communicate to the Senate copies of all orders, instructions, circular
letters, or letters of advice issued to the respective military officers
assigned to the command of the several military districts under the act
passed March 2, 1867, entitled 'An act to provide for the more efficient
government of the rebel States,' and the act supplementary thereto,
passed March 23, 1867; also copies of all opinions given to him by the
Attorney-General of the United States touching the construction and
interpretation of said acts, and of all correspondence relating to the
operation, construction, or execution of said acts that may have taken
place between himself and any of said commanders, or between him and the
General of the Army, or between the latter and any of said commanders,
touching the same subjects; also copies of all orders issued by any of
said commanders in carrying out the provisions of said acts or either of
them; also that he inform the Senate what progress has been made in the
matter of registration under said acts, and whether the sum of money
heretofore appropriated for carrying them out is probably sufficient."
In answer to that portion of the resolution which inquires whether the
sum of money heretofore appropriated for carrying these acts into effect
is probably sufficient, reference is made to the accompanying report
of the Secretary of War. It will be seen from that report that the
appropriation of $500,000 made in the act approved March 30, 1867, for
the purpose of carrying into effect the "Act to provide for the more
efficient government of the rebel States," passed March 2, 1867, and the
act supplementary thereto, passed March 23, 1867, has already been
expended by the commanders of the several military districts, and that,
in addition, the sum of $1,648,277 is required for present purposes.
It is exceedingly difficult at the present time to estimate the probable
expense of carrying into full effect the two acts of March last and the
bill which passed the two Houses of Congress on the 13th instant. If the
existing governments of ten States of the Union are to be deposed and
their entire machinery is to be placed under the exclusive control and
authority of the respective district commanders, all the expenditures
incident to the administration of such governments must necessarily be
incurred by the Federal Government. It is believed that, in addition to
the $2,100,000 already expended or estimated for, the sum which would
be required for this purpose would not be less than $14,000,000--the
aggregate amount expended prior to the rebellion in the administration
of their respective governments by the ten States embraced in the
provisions of these acts. This sum would no doubt be considerably
augmented if the machinery of these States is to be operated by the
Federal Government, and would be largely increased if the United States,
by abolishing the existing State governments, should become responsible
for liabilities incurred by them before the rebellion in laudable
efforts to develop their resources, and in no wise created for
insurrectionary or revolutionary purposes. The debts of these States,
thus legitimately incurred, when accurately ascertained will, it is
believed, approximate $100,000,000; and they are held not only by our
own citizens, among whom are residents of portions of the country which
have ever remained loyal to the Union, but by persons who are the
subjects of foreign governments. It is worthy the consideration of
Congress and the country whether, if the Federal Government by its
action were to assume such obligations, so large an addition to our
public expenditures would not seriously impair the credit of the nation,
or, on the other hand, whether the refusal of Congress to guarantee
the payment of the debts of these States, after having displaced or
abolished their State governments, would not be viewed as a violation of
good faith and a repudiation by the national legislature of liabilities
which these States had justly and legally incurred.